What Happened?
During times of economic turmoil, “buying gold” becomes an important topic. Gold possesses the characteristics of a safe-haven asset, maintaining or even increasing its value in economic upheaval. Under Trump’s fluctuating tariff policies, global economic uncertainty has surged, significantly driving up gold prices.
Of course, the rise in gold prices is influenced by multiple factors, including market panic, geopolitical risks, and central banks around the world reducing their dollar reserves while increasing gold holdings, all contributing to the upward trend in gold prices.
However, if the general public chooses to buy gold to cope with turmoil—even the possibility of war—would Bitcoin be a better choice under this premise? Narrowing down to the tariff storm brought by Trump, let’s seek answers from the performance of gold and Bitcoin.
Gold Soars Amid Tariff Chaos
As stock markets dive like free falls and global markets sell off U.S. Treasury bonds, an ancient belief resurfaces: gold is the true guardian of value in chaotic times. Whenever financial markets are in turmoil, the ranks of gold believers tend to expand. However, in this fast-changing era, does the notion of gold as the ultimate safe haven still hold firm? In the current economic turmoil, can its value truly stand as steadfast as people hope?
To put it simply: yes. A glance at recent prices reveals that gold has performed better than ever following the onset of Trump’s trade war. After surpassing the $3,000 per ounce mark for the first time on March 15, it has continued to rise.
Gold is an important safe-haven asset, fundamentally due to its cross-border appeal and inherent scarcity. It is widely recognized and demanded in the U.S., India, China, and around the world. More importantly, the limited supply of gold provides solid backing for its value.
In recent years, the allure of gold seems to have intensified. Gold climbed from $1,000 per ounce to $2,000 over a span of 12 years, but it took only 5 years to break through the $3,000 barrier. This strong upward momentum has also been acknowledged by professional institutions; JPMorgan has ranked gold as its top bullish investment for three consecutive years, even posing the question, “Is $4,000 within reach?”
The recent surge in gold prices is closely tied to market turbulence, but the deeper driving force comes from the complex geopolitical landscape. Central banks around the globe are accumulating gold at an unprecedented pace, hoping to reduce the proportion of dollar reserves in their foreign exchange holdings. Against the backdrop of Trump’s trade war and the growing skepticism among global investors regarding U.S. Treasuries as a “zero-risk” asset, the ongoing preference for gold seems to indicate a foreseeable trend.
How to Buy Gold Effectively?
However, it must be understood that gold itself does not yield interest. Unlike stocks that pay dividends or bonds that provide interest, holding gold does not generate any periodic income and may even incur additional costs for storage. Of course, for those who firmly believe in gold’s long-term value and view it as a safe asset, the lack of income is not a primary concern. But for other investors, committing substantial funds to a non-income-generating asset may require careful consideration.
Nonetheless, considering gold’s relative stability and the importance of diversifying investment portfolios, a small allocation to gold may be a wise move for most people. So, how exactly should one buy gold?
This depends on personal preference. If low cost and convenience are priorities, investing in gold exchange-traded funds (ETFs) would be a good choice; conversely, if one prefers to hold physical gold, additional considerations regarding minting and fabrication costs are necessary.
According to precious metals dealer Grant, the premium on physical gold varies by product type (coins are typically more expensive than bars) and purchase quantity, generally ranging from 2% to 5% over the spot price. For budget-conscious buyers, Costco is also an option worth considering, reportedly with a markup of about 2%.
Additionally, holding physical gold incurs costs, such as the expense of secure transportation and the purchase of safes or other secure storage solutions to prevent theft. Overall, purely from a cost perspective, buying gold ETFs has its advantages. However, if the concern is a deep-seated fear of economic collapse, wanting to serve as a wartime reserve, or simply enjoying the tangible reassurance of holding physical gold, then purchasing physical gold may be the best choice.
How Does “Digital Gold” Bitcoin Perform?
Another asset known as “digital gold”—Bitcoin—naturally comes into comparison. Bitcoin is a decentralized digital currency that does not rely on any central authority or government for issuance and management. Its limited supply (capped at 21 million coins) gives it a scarcity similar to gold, leading some to view it as a potential store of value and safe-haven asset.
So, how does Bitcoin perform amid this wave of tariff shocks? To state the conclusion first, compared to gold’s clear safe-haven performance during the April 2025 tariff crisis, Bitcoin’s price movements behave more like a high-risk asset.
After Trump announced the tariff measures on April 2, Bitcoin’s price fell alongside global risk assets. In the following days, the price fluctuated within a certain range; however, with the news of tariff delays on April 9, Bitcoin’s price experienced a sharp rebound.
According to CoinMarketCap data, Bitcoin closed at approximately $85,169 on April 1, but following Trump’s announcement of tariffs, the lowest point on April 7 plummeted to $74,436, aligning with the downward trend of global stock markets.
The news of the tariff delay on April 9 again spurred a significant surge in Bitcoin’s price. CoinMarketCap data shows that the highest price that day reached $83,541, closing at $82,573, which was over an 8% increase from the previous day’s closing price.
This dramatic price fluctuation contrasts with gold’s relatively stable upward trend. Traditionally defined safe-haven assets should maintain or increase their value during market turmoil. However, Bitcoin’s performance in April 2025 clearly does not fit this definition.
Amid the global economic uncertainty triggered by Trump’s tariff policies, gold once again proved its value as a traditional safe-haven asset. Meanwhile, as an emerging “digital gold,” Bitcoin, while gradually gaining traction among the younger generation and tech-savvy investors, has yet to demonstrate reliable “short-term” hedging capabilities in response to widespread market panic.
Nevertheless, Bitcoin as an asset class continues to evolve, and whether it can truly play a reliable hedging role in the future remains to be seen through further market validation and the test of time.
Reference: Fortune